Economic Sector

Last updated: Monday, April 22, 2019


Global Opportunity in Digital Economy

Posted: Thursday, September 20, 2018

Digitalisation or digital transformation is occurring across all sectors, including economic sectors, from industry to agriculture to services; from production to distribution and circulation, to supporting infrastructure such as transportation, logistics, finance and banking.

At the World Economic Forum on ASEAN 2018 (WEF ASEAN 2018), Minister of Industry and Trade Tran Tuan Anh participated in the discussion on "Digital Market, Global Opportunity". He said that Vietnam was a country in the process of industrialisation, modernisation and international integration, the application of advanced digital technologies opened up many opportunities in raising the technological level, raising production capacity and competitiveness in the product chain; creating a great change in the form of service business; significantly reducing transaction and transportation costs; offering attractive and potential investment opportunities in the field of digital technology and the Internet, and also being a great opportunity for industrial production with advanced science and technology.

According to the Ministry of Industry and Trade, e-commerce in Vietnam has witnessed rapid and strong growth in recent years. By 2014, e-commerce sales in Vietnam were estimated at US$2.97 billion, accounting for 2.12 per cent of total retail sales of consumer goods and services. With an average annual growth rate of about 29 per cent, by 2017, the retail market size was about US$6.2 billion, up 24 per cent from 2016, representing 3.6 per cent of the total retail sales of consumer goods and services of the country. It is expected that by 2020, 30 per cent of the population will participate in online shopping, with an online purchase value of retail sales of consumer goods and services at US$350 per person per year. B2C e-commerce sales will reach US$10 billion, accounting for 5 per cent of the total retail sales of consumer goods and services nationwide.

If we cannot catch up with the pace of world and regional development, Vietnam may face challenges such as technological lag, production and business decline; excessive low-skilled workers resulting in breaking the traditional labour market; information safety and security, copyright infringement, and lack of qualified human resources, Mr Tran Tuan Anh said.

In order to develop the digital economy, Minister Tran Tuan Anh proposed that ASEAN policy makers should develop a digital conversion strategy not only for each nation, but also for the whole ASEAN region, with emphasis on issues such as enhancing network security and cross-border data flows, facilitating the development of e-commerce and mobile finance, enhancing digital access, and developing high-quality human resources in the digital age.

In the bilateral meeting between Minister Tran Tuan Anh and WEF Executive Chairman Borge Brende on the sidelines of the WEF ASEAN 2018, the two sides noted the close cooperation between the Ministry of Industry and Trade and WEF in the “System initiative on shaping the future of production”, ASEAN Regional Strategy Group (RSG), and digital economic activities. Emphasising the successful organisation of the WEF ASEAN 2018 with the theme " “ASEAN 4.0: Entrepreneurship and the Fourth Industrial Revolution” is important for the Government of Vietnam and the Ministry of Industry and Trade in the process of building guidelines and the national strategy for active and effective participation in industrial revolution 4.0 in the upcoming time.

Minister Tran Tuan Anh suggested that WEF continue to work closely with the Ministry of Industry and Trade to develop and implement digital and e-commerce initiatives. In addition, with WEF's massive membership of the world's leading companies in a variety of manufacturing and business sectors, the Minister suggested WEF expand cooperation in the areas where Vietnam has great potential and interest such as new energy and renewable energy, supporting industries and so on.

Huong Ly

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